X

Market Close: July 19 Mixed

Fueling Strategy: Please wait to fuel until after midnight, Wednesday prices will drop 5 cents ~ Be Safe today
NMEX Crude     $104.22 UP $1.6200
NYMEX ULSD    $3.6268 DN $0.0287
NYMEX Gas      $3.3075 UP $0.0432
NEWS
Oil rose for a second day following a rally in equity markets as thin liquidity left crude susceptible to broader moves. West Texas Intermediate rose 1.6%, recovering from intraday losses of almost 3%, to settle above $104 a barrel. Broader markets continue to drive crude prices with liquidity limited since prices spiked following Russia’s invasion of Ukraine. Despite fluctuations in futures markets, crude barrels continue fetching huge premiums, suggesting tight supply. A disruption along the Keystone pipeline cut shipments of some Canadian oil to US refiners has exacerbated the tightness.

“Right now liquidity is thin, people are away on holiday, there’s more machines than humans,” Amrita Sen, co-founder of consultant Energy Aspects Ltd., said in a Bloomberg Television interview. “We can continue to trade in this very technical band. But structurally this is a market defined by underinvestment.”

Oil markets have been volatile in recent weeks as traders navigated concerns that a looming recession would hurt demand and the fallout from a stronger dollar against the signs of tight physical supplies. Nearby Brent futures are trading in excess of $4 higher than the second month, a huge premium indicating that refiners are willing to pay up for barrels. Despite the strength in crude, refined products prices are starting to ease. US nationwide gasoline prices fell to a two-month low, according to AAA data published Tuesday. In recent days, traders have been grappling with President Joe Biden’s efforts to get Saudi Arabia to lift its oil production.

On his visit to Saudi Arabia, Biden urged producers from the region to boost supplies. In response, Saudi ministers insisted policy decisions would be taken according to market logic and within the OPEC+ coalition, referring to the Organization of Petroleum Exporting Countries and allies including Russia. The kingdom’s foreign minister said there is no lack of oil on the market, but a lack of oil refining capacity to turn it into fuels.

“The whole concept of going to Saudi Arabia to ask for extra production is sort of impractical,” Fereidun Fesharaki, chairman of industry consultant FGE, told Bloomberg TV, noting that the kingdom has already been pumping crude at close to its historical peak, with relatively little spare capacity likely left to tap. “If there’s no buffer in the market, the prices will go haywire.”

Have a Great Day,
UPCOMING OUT OF OFFICE DATES:
Thursday, July 28, 2022 – August 01, 2022
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!

www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” ~ Douglas Adams
Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.